Restaurant Brands, NextEra megadeals drive by; Toys ‘R’ Us off again on Chapter 11 talk

By Paul Deckelman and Paul A. Harris

New York, Sept. 18 – Last week’s robust new-issuance trend continued unabated to start the new week on Monday, as a pair of issuers combined for $2.6 billion in new U.S. dollar-denominated and fully junk-rated paper, which priced in three tranches.

Canadian-American fast-food eateries operator Restaurant Brands International Inc. served up a quick-to-market $1.5 billion add-on to the eight-year secured bonds that it sold a little more than a month ago.

That new issue – upsized from its originally announced amount – was heard by traders to have moved higher when the credit hit the aftermarket.

NextEra Energy Partners, LP, which specializes in clean energy projects, brought a $1.1 billion two-part offering to market, consisting of a pair of $550 million tranches of seven- and 10-year notes. That late-breaking deal was not reported to have generated much in the way of trading following its pricing.

Traders meantime saw continued brisk activity in some of the issues that priced at the tail end of last week, including Wabash National Corp., iStar Inc. and Avolon Holdings Ltd.

Away from the new issues market, participants were watching the continued destruction of Toys ‘R’ Us Inc.’s bonds; that paper – already on the slide since just after Labor Day, continued to cascade lower on Monday amid renewed speculation that the troubled retailer could file for Chapter 11 protection from its bondholders and other creditors, with some news reports predicting such a step was imminent.

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